Advertising and marketing | UK Regulatory Outlook

April 2026

UK updates 

ASA publishes first rulings on LHF advertising restrictions 

The Advertising Standards Authority (ASA) has issued a series of rulings clarifying how the "less healthy" food (LHF) advertising restrictions, which came into effect on 5 January 2026, and the Committee of Advertising Practice's implementation guidance apply in practice.  

The rules prohibit: advertising and sponsorship for "identifiable" LHF products on Ofcom-licensed TV services and Ofcom-regulated on-demand programme services between 05:30 and 21:00; and paid-for ads for "identifiable" LHF products intended to be accessed principally by persons in the UK, at any time. 

The ASA addressed the "identifiability" test, whether the products featured were HFSS (high in fat, salt and sugar), and cases where an LHF product appeared purely incidentally. 

UK government consults on applying the new NPM to advertising and promotions restrictions for LHF  

All advertising and promotions restrictions (including the above) are currently underpinned by the UK nutrient profiling model (NPM) 2004 to 2005. NPM is a technical tool that determines which food and drinks are "less healthy" by balancing the beneficial nutrients against less beneficial nutrients in these products and producing a score. 

There is a two-step process to determine which products are less healthy and in scope of the restrictions: (i) determine the product category (it must fall into one of the food and drink categories in the regulations); and (ii) calculate the NPM score: the product is only in scope of the restrictions if it is also assessed under the NPM 2004 to 2005 and receives a score of "4" or above for food or "1" or above for drinks. The technical guidance in the NPM 2004 to 2005 provides instructions on how to calculate the NPM score for different products. 

Following a review of the NPM 2004 to 2005, the government has published an updated version (the NPM 2018) which also includes updates to the technical guidance. The NPM 2018 has not yet been applied to policy.  

The government's view is that it is now right to apply the NPM 2018 to advertising and promotions restrictions and, on 25 March 2026, it published a consultation, closing on 17 June 2026, seeking views on: 

• The impact of its proposals on children, businesses and groups with protected characteristics. The main difference under the new NPM is that it implements the Scientific Advisory Committee on Nutrition (SACN) recommendation that free sugars make up no more than 5% of energy intake. This change means that some products that would be defined as "healthier" by the NPM 2004 to 2005 would be defined as "less healthy" using the NPM 2018. The new NPM is also slightly stricter on points for saturated fat and energy, meaning more savoury snacks will be classified as "less healthy".
• The timescales for implementing its proposals – the government proposes a 12-month adaptation period for businesses and enforcement authorities.  

Regulators launch joint taskforce to address poor practice in motor finance claims 

The ASA, together with the Financial Conduct Authority, the Solicitors Regulation Authority and the Information Commissioner's Office, has launched a taskforce to tackle the poor handling of motor finance claims by some claims management companies and law firms.  

The regulators will share intelligence and take co-ordinated and targeted action to mitigate harm to consumers, addressing issues including unsolicited and misleading advertising, meritless claims, multiple representation and unfair exit fees. See also fintech, digital assets, payments and consumer credit section. 

International updates 

ICC publishes guide on applying its Advertising and Marketing Communications Code to AI 

The International Chamber of Commerce (ICC) has published a guide setting out how to apply the ICC Advertising and Marketing Communications Code when using AI.  

The code provides practical guidance to advertising industry stakeholders, including advertisers, advertising agencies, self-regulatory advertising organisations and national governments. The most recent update to it was published in 2024 and explicitly incorporated AI into its provisions. 

The guide outlines: (i) an overview of relevant code principles and commentary on their application in the context of AI; (ii) a checklist for organisations looking to deploy AI in their advertising and marketing campaigns and for marketers already using AI; and (iii) suggested questions to consider to ensure compliance with the code and general advertising and marketing practices. 

Previous updates

March 2026 updates

Online Advertising Taskforce: 2025 progress update and 2026 objectives 

The UK government has published a progress update on the Online Advertising Taskforce's work in 2025 and its objectives for 2026, covering the activities and plans of its working groups: 

• Age assurance: this working group aims to improve age assurance standards to reduce children's exposure to advertising for age-restricted products. It conducted a pilot with multiple brands and platforms to assess the effectiveness of ad targeting practices, and commissioned research to measure ad targeting accuracy across participating brands' campaigns in November and December 2025. The initial findings provided proof of concept for how ad targeting compliance can be monitored, and the group is considering how this may serve as a baseline for future work.
• AI: chaired by the Advertising Association (AA), this group explores AI's effect on trust, transparency and accountability in advertising content and placement. Its key achievement was the development of a Best Practice Guide for the Responsible Use of Generative AI in Advertising (see this Regulatory Outlook for more information), and its focus for 2026 is to maximise the guide's visibility and uptake. The group also considered issues around AI labelling in advertising.
• The Gold Standard: chaired by IAB UK, the group promotes awareness and uptake of IAB UK's Gold Standard, a certification scheme designed to address challenges in the online advertising ecosystem (including ad fraud, transparency and business trust in online ads). A new specification, launched in January 2025, expanded its scope to emerging advertising channels such as retail media and connected TV, and introduced a sustainability pillar. The group will conclude its taskforce activities, transitioning into a new ad fraud and standards working group co-chaired by IAB UK and government.
• The Influencer Marketing: chaired by ISBA, this group was set up to improve standards for incorporation into the Influencer Marketing Code of Conduct. In 2026, it plans to work with platforms to coordinate campaigns by content creators to promote the code and educate them on its provisions.
• The Information Sharing: chaired by the AA, this group examines barriers to sharing intelligence on malvertising (when malware is inserted into online ads) in the advertising ecosystem and developed a pilot for sharing online fraudulent ad signals.
• The Intermediary and Platform Principles (IPP): chaired by the Advertising Standards Authority (ASA), this group focuses on implementing a full-scale IPP framework to support platforms in promoting and enforcing the CAP Code. The aim for 2026 is to achieve industry and ASA agreement on the principles, with a full framework launch expected from summer 2026.
• The Ad Fraud and Standards: established in November 2025, this group focuses on ensuring industry understanding of existing transparency mechanisms that help minimise malicious advertising in the legitimate online advertising supply chain, and on identifying gaps to strengthen their efficacy or adoption. 

CAP publishes advice note on advertising in-game purchases such as loot boxes 

The Committee of Advertising Practice (CAP) has issued a short guidance note on the advertising of games containing loot boxes, which are in-game purchases involving an element of chance where the consumer does not know what they will receive until the transaction is completed. CAP references its guidance on advertising in-game purchases (reviewed in April 2025). 

It states that to be in scope of CAP Code rules, loot boxes must be able to be purchased with real money or virtual currency that can only be obtained by purchasing. Ads for games containing such loot boxes are subject to the CAP Code when they appear in in-scope media, including app store listings targeting UK consumers regardless of the advertiser's location. CAP states that the presence of loot boxes is material information for consumers, particularly those with specific vulnerabilities. 

The ASA has ruled that app store listings for games containing loot boxes must clearly and prominently state this, for example using a phrase such as "Includes random-item purchases" or "Contains loot boxes." A disclosure buried within an expandable "About this game" section (or similar) or further down a game description is unlikely to be sufficient. The ASA also did not consider generic "Offers In-App Purchases" labels offered by app stores, or references to products within an itemised list of in-game purchases, to be sufficient. The same disclosure requirements apply to ads on other platforms. 

Seven social media influencers fined for issuing unauthorised financial promotions  

Seven social media influencers have pleaded guilty to, and received fines for, issuing unauthorised financial promotions. Communicating unauthorised financial promotions is an offence under Sections 21 and 25 of the Financial Services and Markets Act 2000, punishable by a fine and/or up to two years' imprisonment. The UK Financial Conduct Authority has previously published guidance on financial promotions on social media, setting out its expectations for firms and influencers in this area. 

February 2026 updates

CMA publishes explainer on its Green Claims Code with focus on supply chain responsibility  

The Competition and Markets Authority (CMA) has published additional guidance, "Making green claims: Getting it right, across the supply chain", designed to complement its existing Green Claims Code and sector-specific guidance on making green claims about fashion products. It provides further clarity on where responsibility for making environmental claims lies at different points in the supply chain. 

The CMA emphasises that consumer protection law applies to all traders whose practices relate to the promotion or supply of products to consumers, including manufacturers, suppliers, brands, distributors and retailers.  

"Making" an environmental claim includes what businesses say about the environmental credentials of a product (for instance, on their websites or product packaging), how it is presented (including logos and imagery), and what is left unsaid where that information is needed for consumers to make informed decisions (for example, in relation to the disposal of the product for the environmental benefit to be realised). Businesses can be liable where they originate a claim, repeat it (for example, by stocking a product) or pass it on. 

Different businesses in the supply chain may hold the information required to verify claims made to consumers. However, complex supply chains do not dilute legal responsibility. Businesses in the supply chain may need to work together to ensure that claims are accurate and not misleading. Where a business cannot obtain sufficient information to verify a claim, it should change how the claim is made; where it cannot obtain this information because another business is the source of the claim, it may need to consider its trading relationship with that business, given the legal risk. Innocent or unwitting breaches will still infringe consumer protection law, and exercising "due diligence" to avoid making a misleading environmental claim is not a defence in civil enforcement proceedings. 

The guidance includes illustrative examples and practical checklists for retailers, brands, suppliers and manufacturers, to assist businesses in designing internal processes, structuring relationships with other parties in the supply chain, negotiating contractual arrangements and establishing evidence-gathering practices that support compliant environmental claims. 

ASA publishes findings from sweep of green claims in online ads 

The Advertising Standards Authority (ASA) has published findings from a proactive sweep of environmental claims in online ads by major UK travel agents. Using its AI-based Active Ad Monitoring system, the regulator scanned and reviewed 362,000 ads across services allowing consumers to search for and purchase flights, hotels, cruises, holiday transport and flight package deals, combining some or all of those from third-party suppliers, to check compliance with the UK Code of Non-broadcast Advertising and Direct and Promotional Marketing (CAP Code). See this MarketingLaw article for more information on the findings.  

ASA publishes research on recognising influencer advertising  

The ASA has published newly commissioned research examining how people recognise influencer advertising on social media. The findings show widespread difficulty among consumers in identifying influencer ads and strong public demand for clearer disclosure. 

Key findings include: 

• The nature of the social media experience – no ad breaks, highly personalised algorithms and influencers routinely sharing recommendations – makes it inherently more difficult to distinguish paid posts from genuine recommendations.
• Brand ads remain the "gold standard" in terms of clarity: three-quarters of respondents could identify them as "definitely an ad". By contrast, only around half said the same of influencer marketing. However, this stated confidence did not always reflect what happened when people were shown real posts. Confusion ran in both directions: some genuine reviews were mistaken for ads, and paid posts were seen as organic content.
• Regarding the factors that enable consumers to recognise influencer marketing, the research firstly points to a post's content. People draw on a range of signals: brand mentions, excessive positivity about a product, persuasive language, visual product placement, calls-to-action, known brand relationships with an influencer and a general sense that the content "feels different". Such cues may indicate that a post is an ad even without a label. However, clear labels serve as a critical confirmatory backstop – either reinforcing suspicion that a post might be an ad or acting as the sole alert that the influencer post is an ad.
• With respect to labelling, the majority of respondents consider clear labelling essential for identifying influencer advertising. Further, over two-thirds of respondents said that they would like labels to indicate how an influencer was paid or rewarded.
• Notably, a label's wording and placement determine its effectiveness: respondents say that labels should appear upfront, before the caption, so that users are not required to expend additional effort to find them. Labels such as "Commission Paid", "Paid Partnership" and "Ad" are seen as the most effective in conveying unambiguous ad status. 

The ASA observes that existing rules already require influencers to label advertising content. The findings will inform a review of the relevant guidelines to ensure that influencer marketing remains compliant with the CAP Code requirement that all marketing communications be "obviously identifiable as such." 

CAP publishes guidance on the presentation of VAT in advertisements 

The Committee of Advertising Practice (CAP) has published a guidance note on the presentation of VAT in ads. CAP observes that the ASA's position on VAT pricing, reflected in its previous rulings, appears to be aligned with the CMA's new guidance on price transparency under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). The CMA's guidance addresses, among other things, the presentation of various charges, including taxes such as VAT. 

CAP reminds marketers of the relevant provisions of the CAP Code concerning the presentation of taxes and notes that the manner in which VAT should be presented in ads will depend on the nature of the target audience. The note addresses various scenarios, including where customers are consumers, businesses or a mixed audience, as well as the presentation of prices in sponsored search results. 

It has also developed an "Advertising VAT Compliance Tool", which is an interactive resource designed to assist advertisers in determining whether prices in their ads are required to include VAT. 

CAP explains the ASA's remit on cross-border ads 

CAP has published an article explaining the ASA's remit in relation to cross-border ads. It explains that ads on a marketer's own website with a ".uk" top-level domain, non-paid-for marketing communications from or by marketers with a UK-registered company address and paid-for marketing communications from or by marketers targeting consumers in the UK will fall within the scope of the CAP Code. 

When considering what "targeting UK consumers" means, marketers might consider the following factors (although this list is not exhaustive): 

• Where an ad appears – if an ad has appeared on a website based in the UK, it is likely to be targeting a UK audience.
• The manner in which an ad is served – marketers should consider whether the ad has been targeted to someone based on their location.
• The ad's content – marketers should ask themselves whether there is something about the content that targets UK consumers. Relevant indicators may include: using prices in pounds sterling, providing consumers with a UK telephone number or geographic address for support, inviting consumers to visit physical premises in the UK, referring to a product or service that is only available in the UK or the marketer being subject to regulation under UK regimes (for example, being subject to regulation by the Gambling Commission). 

Where an ad falls outside the scope of the CAP Code, the ASA may refer it through the European Advertising Standards Alliance (EASA) cross-border complaints process, which co-ordinates complaints between self-regulatory organisations across most EU Member States and many non-European countries. If the ASA cannot refer a complaint via this process for any reason, it will consider taking what action it can if the ad specifically targets UK consumers. 

The CAP Code will apply to any direct marketing communications (emails, mailings, text messages) sent from marketers within the UK. Where a message is sent from abroad, it will fall within the jurisdiction of the relevant organisation in that country. Where a referral through EASA is not possible, the ASA will take what action it can. 

Advertising Association publishes best practice guide for the responsible use of generative AI in advertising 

The Advertising Association has published a new voluntary "Best Practice Guide for the Responsible Use of Generative AI in Advertising", developed under the auspices of the UK government and industry-led Online Advertising Taskforce. It builds on and puts into practice the IPA and ISBA principles for ethical AI use in advertising published in 2023. 

It takes into account UK legal and regulatory frameworks (including the UK GDPR, the Data Protection Act 2018, the Equality Act and the DMCCA), as well as the advertising codes and ICO and ASA guidance, providing practical interpretation of their application in the generative AI context. The Advertising Association states that while it has been developed for the UK market, its principles are sufficiently flexible to accommodate international interpretations and applications.  

The guide is focused on eight core principles: 

• Transparency: disclosure of AI-generated or AI-altered advertising content should be determined using a risk-based approach that prioritises the prevention of consumer harm.
• Responsible use of data: personal data used for generative AI applications, including model training, algorithmic targeting and personalisation, should comply with data protection law and respect individuals' privacy rights.
• Preventing bias and ensuring fairness: generative AI systems should be designed, deployed and monitored to prevent discrimination against and ensure fair treatment of all individuals and groups.
• Human oversight and accountability: AI-generated advertising content should be subject to appropriate human oversight before publication, with the level of oversight proportionate to the potential for consumer harm.
• Promoting societal wellbeing: generative AI should not be used to create, distribute or amplify harmful, misleading or exploitative advertising content. Where possible, AI should be deployed to enhance consumer protection and advertising standards.
• Brand safety: organisations should assess and mitigate brand safety and suitability risks arising from AI-generated content and AI-driven ad placement, ensuring generative AI systems align with brand values and safety standards.
• Environmental considerations: when selecting generative AI tools and approaches, organisations should consider the environmental implications alongside business objectives, favouring energy-efficient options where practical.
• Monitoring and evaluation: generative AI systems, once deployed, should be subject to continuous monitoring to detect performance degradation, bias drift (where outputs become progressively more skewed over time), compliance failures or other issues that may require intervention. 

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January 2026 updates

A busy regulatory agenda lies ahead in 2026 for advertisers, platforms and brands. In the UK, the Advertising Standards Authority (ASA) and the Committee of Advertising Practice (CAP) are likely to continue focusing on influencer disclosures and protecting children, and the ASA will scale up its AI based Active Ad Monitoring system to proactively identify non compliance. UK restrictions on the advertising of less healthy food and drink are now in force and environmental claims remain a high-priority enforcement area for the regulators. With the unfair commercial practices regime in the Digital Markets, Competition and Consumers Act 2024 (DMCCA) now fully in force, the Competition and Markets Authority (CMA) is starting to use its enhanced consumer protection powers and sharpening its focus on drip pricing and pressure selling. In the EU, the proposed Digital Fairness Act may also target influencer marketing. Below, we set out in more detail the key developments most likely to shape 2026.

Influencer marketing

The UK Advertising Standards Authority (ASA) continues to monitor influencers' compliance with the rules on the disclosure of ads in social media posts. While some improvement has been observed, the ASA still identifies compliance gaps, and it has said that it will apply targeted sanctions for repeated breaches.

All parties in the advertising supply chain – influencers, brands and agencies – share responsibility for clear disclosure of advertising content. Parties must use platforms' disclosure tools, mark posts with "Ad" or "#ad", and not rely on ad disclosure in bios or other advertising posts. The ASA will only find disclosure "clear by context" for own-brand advertising if it is absolutely clear that the ad is indeed own‑brand advertising (for example, when the brand name matches the advertiser's account name).

The EU's proposal for the Digital Fairness Act (DFA), expected to be published in the fourth quarter of 2026, may address influencer marketing. The European Commission is concerned about hidden marketing (influencers not clearly labelling ads as ads), the promotion by influencers of potentially harmful products (such as tobacco or vaping, unhealthy food and drink) and the promotion of unrealistic beauty standards. In its consultation on the DFA, the Commission asked various questions on influencer marketing to assess what needs to be done (whether that is new binding legislation in the form of the DFA, more effective enforcement of existing rules or simply the publication of some new guidelines) to prevent these harmful practices by influencers. This would include potentially ensuring that influencer compliance responsibilities are shared with the brands that collaborate with them.

AI: disclosure and enforcement

The UK advertising codes do not contain specific rules on the use of AI in advertising content. However, the Committee of Advertising Practice (CAP) advises that the codes apply to all advertising content, regardless of how it is created. Accordingly, ads created using AI are subject to the same requirements as those produced through more traditional creative processes. When using AI, CAP suggests that advertisers ask themselves whether the audience would be misled if the use of AI is not disclosed and, where there is a risk of the ad misleading consumers, whether disclosure would clarify or contradict the ad's overall message. Disclosure cannot remedy fundamentally deceptive messaging. CAP encourages marketers to exercise particular caution around the use of deepfakes and other AI technologies that could potentially mislead viewers.

The ASA is constantly scaling up its AI-based Active Ad Monitoring system to proactively identify non-compliance across online advertising, enabling faster identification and banning of irresponsible ads.

The EU AI Act's transparency obligations are due to take effect from 2 August 2026 (subject to proposed changes contained in the recently published Digital Omnibus). The European Commission is developing a voluntary code of practice for providers and deployers of generative AI on the marking and labelling of AI-generated content, including deepfakes and other synthetic audio, images, video and text, expected by summer 2026.

Protection of children

Protecting children remains a core priority for the regulators. UK action has focused on protecting under 18s from gambling advertising through ASA adjudications and CAP's updated guidance in this area.

In the EU, the Digital Services Act prohibits online platforms from displaying ads based on profiling to minors and requires platforms accessible to minors to put in place measures to ensure a high level of privacy, safety and security for minors. The Commission has published non-binding guidelines to support compliance with these obligations, including in respect of advertising. Providers of online platforms accessible to minors should ensure that minors are not exposed to harmful, unethical and unlawful advertising; commercial communications are clearly visible, child friendly, age appropriate and accessible; and minors are not exposed to hidden or disguised advertising.

Price transparency under the DMCCA

The UK Digital Markets, Competition and Consumers Act's (DMCCA) unfair commercial practices provisions, fully in force since April 2025, prohibit practices such as drip pricing and fake reviews. The Competition and Markets Authority (CMA) now has direct enforcement powers, which include the power to impose significant fines, and is focusing initial action on online pricing practices such as drip pricing and pressure selling.

Subscriptions

The DMCCA introduces a new regime for paid business-to-consumer subscription contracts that includes rules on providing certain pre‑contract information, sending renewal reminders and making cancellation of subscription contracts simpler. The regime is expected to come into effect in autumn 2026, with further detail to be set out in secondary legislation and guidance.

The EU DFA is expected to address problems with digital contracts, including subscription cancellation processes, auto-renewals and free trials automatically converting to paid subscriptions.

Restrictions on less healthy food and drink advertising

The UK's restrictions on the advertising of less healthy food and drink are in effect from 5 January 2026, following a delay to provide for an explicit exemption for pure "brand advertising". The regime introduces a 21:00 watershed on broadcast TV and a total ban on paid‑for advertising of in‑scope products online. The ASA has confirmed its commitment to start enforcing the rules from January 2026, and CAP has published new advertising guidance to help marketers understand how the ASA is likely to apply the rules. 

Tobacco and vapes

The UK Tobacco and Vapes Bill proposes banning vapes and nicotine products from being deliberately branded, promoted and advertised to children. The bill is progressing through Parliament, currently at the report stage in the House of Lords. 

Green claims

The ASA has reiterated its commitment to the Climate Change and Environment project, prioritising action on advertising for carbon neutrality and net zero, greener homes, fast fashion, transport and travel, energy, green disposal and meat, dairy and plant-based alternatives. CAP's recent series of guidance notes on environmental claims covered the homes, cruise and aviation industries, and the ASA's proactive sweep of environmental claims focused on online ads by major UK travel agents.

The EU Green Claims Directive proposal, which would, among other things, require companies to provide verified evidence for any green claims, is currently on hold following the European Commission's attempt to withdraw the directive. According to the Commission's 2026 work programme, the proposal remains pending.